Verizon to buy Yahoo for $4.8 billion

US telecoms giant Verizon Communications is buying Yahoo’s search and advertising operations for $4.83 billion, according to media reports.

The two firms were in exclusive talks over a possible deal. It was also reported that Yahoo announced in February that it was looking at ‘strategic alternatives’ for its core internet business, but Verizon declined to comment on the reports.

The sale involves Yahoo’s core internet business the company’s stable of patents will be sold separately, as would its multibillion-dollar stakes in Chinese Internet powerhouse Alibaba Group and Yahoo Japan. Yahoo shareholders will retain about $41 billion in investments.

The official deal is expected to be announced to this date, ending months of speculation.

Yahoo CEO Marissa Mayer also expected to step down after being failed to reinvigorate the company, but would go away with $55 million severance package.

Yahoo currently has 8,800 employees but it is likely to decrease significantly once Verizon will acquire the property and elminates positions where synergies with existing assets can be realized.

Verizon known to beat out AT&T, private-equity TPG and a consortium led by Quicken Loans founder Dan Gilbert — also the majority owner of the Cleveland Cavaliers.